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A sudden need for a large amount of money can put anyone in a fix. People then seek banking and financial institutions to take advantage of the numerous loan products on offer.

State Bank of India (SBI), our country’s largest banking institution offers specially designed personal loans to their customers. Customers can benefit through these personal loans when they are in immediate need for cash.

SBI offers one of the lowest interest rates on personal loans. The interest is calculated on daily reducing balance. They also boast of a very quick processing time on personal loans.

BI offers personal loan either in the form of a Term loan or an Overdraft facility. Individuals can opt the mode of loan disbursal to suit their needs.

Apart from a low rate of interest, SBI offers periodical offers to personal loan borrowers that can reduce their EMI burden. The current interest rate on personal loans from SBI ranges from 11.05% - 17%.

Purpose – SBI personal loans can be availed for any general purpose like marriage, higher education, foreign travel, vacation plans, medical expenses, etc; except for any speculative activities.

SBI Personal Loan Interest rates

SchemesCurrent Rate of Interest (Floating)
Xpress Credit
CategoryTerm LoanOverdraft
For Defence Personnel12.05 - 12.55 %12.55 - 13.05%
For Other applicants12.05 - 15.05 %12.55 - 15.55%
IT Employees scheme13.45 - 15.45%
Xpress PowerAll categories12.15 -13.80%12.65 -14.3%
Xpress Elite
SBI Salary Package A/C holders11.05 - 12.55 %
Other applicants11.30 - 12.80 %
Other Unsecured personal loans
Pension Loans12.00%
Clean Overdraft17.10%
Xpress Credit Insta Top-up12.15%
Pre-approved personal loans14.15%

Factors that impact your Personal Loan interest rate

SBI has strict guidelines when it comes to personal loan processing. They want to be absolutely sure of the individual’s repayment capability before approving the loan.

Credit Score

SBI ensures that the borrower has a healthy credit score. A healthy credit score indicates higher repayment capability. Hence, credit score helps you in getting a better loan amount with lower interest rates.

Income

Banks would like to ensure that the borrower is able to afford to pay the EMIs comfortably. A higher income ensures this. Hence, an individual with higher income gets higher loan amount and attractive interest rates.

Employment & Employer

Most banks have a list of preferred employers and reputed organisations, that they refer to while processing your loan. Employment in these organisations assures the bankers of your job stability and income flow. Hence you are bound to get offers of higher loan amount and lower interest rate.

Relationship with the lender

Banks are constantly offering various benefits and discounts to their existing customers. Having a good financial standing with the bank and having a healthy credit history helps you in securing a personal loan with better interest rate.

Xpress Credit Personal Loan for Government employees

This loan scheme is designed for individuals holding salary accounts with the bank. The borrower should be the employee of State/Central Government, Central PSUs, Recognized Educational Institutions or of designated Corporates, maintaining a salary account with the bank. This loan can be availed either as a term loan or an overdraft facility. Some of the features of this loan are:

  • Income eligibility – Minimum of Rs.5000/- p.m. The EMI/NMI ratio should not exceed 50%
  • Repayment tenure – a maximum of 5 years or the period of remaining service, whichever is earlier
  • Repayment tenure – a maximum of 5 years or the period of remaining service, whichever is earlier
  • Loan amount
    • Term Loan – Min. Rs.25000/-
    • Max. – 24 times of net monthly income(NMI) or Rs.15 lakh, whichever is lower
    • Overdraft – Min. Rs. 5 lakh
    • Max. – 24 times of NMI or Rs.15 lakh, whichever is lower
  • Processing fees – 1% of the loan amount + applicable service tax
  • Penal charges for non-payment of EMI – 2% p.a over and above the applicable interest rate on the overdue amount for the period of the default
  • Prepayment charges – Pre-closure of the loan is allowed. A prepayment charge of 3% on the prepaid amount would be levied. However, if the loan is pre-paid from the proceeds of new loan taken under the same scheme, then the pre-payment charges are waived off.
  • A second loan can be availed after 1 year of disbursement of the 1st loan, subject to satisfactory repayment history

SBI Xpress Power Bandhan Personal Loan

This is an unsecured personal loan offered to individuals even if they are not maintaining a salary account with the bank. The borrower should be the employee of State/Central Government, Central PSUs, Recognized Educational Institutions or select Corporates. This loan can also be availed either as a term loan or an overdraft facility.

  • Income eligibility – The minimum required income is capped at Rs.50000/- p.m
  • Repayment tenure – a maximum of 5 years or remainder of service, whichever is earlier
  • Security/Guarantee – NIL
  • Loan amount
    • Term Loan – Min. Rs.25000/-
    • Max. – 24 times of NMI or Rs.15 lakh, whichever is lower
    • Overdraft – Min. Rs. 5 lakh
    • Max. – 24 times of NMI or Rs.15 lakh, whichever is lower
  • Processing fees – 1% of the loan amount + applicable service tax

SBI Pension loans

Exclusively offered to pensioners drawing their pension through any of the SBI branches. This scheme is offered to 3 kinds of pensioners

  • State/Central Government pensioners – pensioners who have served in any of the State/Central Government entities
  • Defence Pensioners – pensioners of Armed forces, Paramilitary forces, Coast Guards, Rashtriya Rifles, Assam Rifles and other similar defence establishments, who draw their pension at any of the SBI branches
  • For Family Pensioners – i.e., for the spouse authorized to receive the pension upon death of the pensioner

Age eligibility The age of the pensioner should not be more than 76. In case of family pensioners, the spouse authorized to collect the pension should not be more than 76 years of age

Quantum of Loan

  • For State/Central Govt. pensioners – Min. of Rs. 25000/- up to a max. of Rs. 14 lakh
  • For Defence pensioners – Min. of Rs. 25000/- up to a max. of Rs. 14 lakh
  • For family pensioners – Min. of Rs 25000/- up to a max. of Rs. 5 lakh

Repayment tenure – As stated earlier, the age of the pensioner should not be more than 76 years at the time of loan sanction. The repayment tenure is fixed based on the age of the pensioner at the time of loan sanction. It could range from 24 months to 84 months based on the age of the applicant.

Prepayment charges – A prepayment charge of 3% on the prepaid amount would be levied. However, if the loan is pre-paid from the proceeds of new loan taken under the same scheme, then the pre-payment charges are waived off.

How can I apply for an SBI Personal Loan?

One can apply for the loan by submitting the duly filled loan application form with the necessary documents as prescribed by the bank. The facility is also available through online channels like the SBI YONO app or through internet banking for pre-approved customers.

FAQs- SBI Personal Loan Interest Rate

1. How long does it take for the personal loan to be processed?

SBI usually takes 2-7 business days to process the personal loan, upon submitting the duly filled application form along with all the required documents.

2. What are the processing fees for personal loan application?

Xpress Credit and Xpress Power schemes - 1% of loan amount + applicable GST

SBI Pension Loans – 0.50% + GST

No processing fees shall be charged for applications of defence personnel

3. Do I need to present some sort of security?

No security is needed to secure a personal loan

4. Can a spouse’s income be added to avail the loan?

Yes, spouse’s income can be added provided he/she guarantees the loan or is the co-applicant on the loan.

5. What does it mean by interest calculated on daily reducing balance?

In the daily reducing balance methodology, interest is calculated only on the outstanding loan amount, which reduces with every EMI or any other pre-payment. Thus, your effective interest amount is reduced significantly.

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